Name of the Project
Epanko graphite project.

Location
Tanzania.

Project Owner/s
Kibaran Resources.

Project Description
An updated bankable feasibility study (BFS) has demonstrated a highly robust business case for a 60 000 t/y operation at Epanko and has also substantially enhanced and derisked the project’s development.

The project has an ore reserve of 11.7-million tonnes grading 8.32% total graphitic carbon for 971 000 t graphite supporting an 18-year mine life.

The BFS is based on a mining contractor scenario.

Mining will be undertaken using the conventional drill-and-blast technique, with the fleet comprising an 80 t backhoe excavator and 40 t off-highway haul trucks.

Mining operations will start in the Eastern pit and progress to the Western pit in Year 6 to the scheduled reserve exhaustion in Year 16. The average life-of-mine strip ratio is expected to be 0.4:1 (waste to ore).

The Western deposit entails mining a strike length of 1 360 m along the top of the ridge to a depth of 210 m in the south. 

The Eastern deposit, located partially over a hill within a small valley, will be mined to a depth of 125 m and will have a strike extent of 350 m.

The process plant is designed with a throughput capacity of 720 000 t/y for an average total graphitic carbon grade of 96% and average production of 60 000 t/y. The plant is based on a crush-and-grind comminution circuit (two-stage crushing circuit with single-stage rod mill), followed by rougher flotation.

The tailings are reground in a ball mill before entering the scavenger flotation. The rougher and scavenger concentrates will be combined and transferred into the primary cleaner section comprising polishing mills and cleaner flotation banks.

The concentrate will then be screened into fractions of two sizes, with subsequent polishing and four-stage cleaning, and no further milling required in the cleaning circuit.

The product will be dewatered, dried and screened into saleable size fractions. The flow sheet is optimised for a high yield of large flakes; however, it could be easily modified to get higher carbon content by flotation if required. There is potential to extend the forecast mine life beyond 18 years.

Potential Job Creation
The project is expected to employ about 300 Tanzanians and will create up to 4 500 indirect jobs through the supply of local goods and services.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $211-million and an internal rate of return of 38.9%, with a 3.4-year payback.

Capital Expenditure
Capital costs have been estimated at $88.9-million.

Planned Start/End Date
The project will take about 19 months to complete.

Latest Developments
Kibaran Resources has mandated Germany’s KfW IPEX-Bank to provide debt funding to develop the Epanko graphite project.

KfW IPEX-Bank and Kibaran will now proceed with a lender credit review process and prepare an application for the German government untied loan guarantee scheme that supports the proposed senior debt funding package for Epanko.

Kibaran has reported that the project is development ready, with the company already having invested more than A$35-million to date. Sales and offtake agreements have also been secured, with a mining licence and environmental approvals in place.

Kibaran has noted that positive discussions with the Tanzanian government are continuing, following the recent Barrick Gold announcement regarding a resolution of the dispute with Acacia Mining.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kibaran Resources, tel +61 8 6424 9000 or email info@kibaranresources.com.